Obstacles to change
- getting started
- impulsivity
- consequences only later
- procrastination
- forgetfulness
- lack of motivation
- confidence (lack of)
- conformity
Nudging
- leaders are choice architects
- who gets how much remuneration
- how many meetings are you doing and what about
- also public leaders like politicians are choice architects
- people love being asked for their opinion
“any aspect of the choice architecture that alters people’s behavior in a predictable way without forbidding any options or significantly changing their economic incentives”
Choice architecture
- descriptions, procedures and other context factors
- Decoy Effect
Predicted effect
- I want my nudge to do something
Rationality Neutral
- Incentive Scheme stays the same, but the environment is changing
- decision maker has still autonomy
- a nudge is “easy and cheap to avoid”
Ladder of interventions
- do nothing, just monitor
- people feeling watched
- provide information
- enable choice
- changing the default option ← Nudging
- incentives (give money)
- disincentives (fines)
- restrict choice (harder)
- eliminate choice (impossible)
Upsides
- we are great at comparing, not at pinpointing exact prices
- the default option is very important
- any additional effort can be forgotten or not done at all
Downsides
-
descriptive norm … what people are doing now
-
injunctive norm … what people are supposed to do
-
effects are highly contextually
-
effects might be tiny
-
effects may not last
-
backfiring may be possible
Boosting
- creating competence, so people make better decisions for themselves